Renegade Petroleum (RPL:TSXV) recently increased its credit line to C$80 million from C$65 million and shook up its management team by replacing its executive vice president of exploration.
The exploration and production company was subsequently rated Outperform by both financial services company Raymond James and equities research firm Macquarie Equities Research. Renegade received a C$5.75 target share price from Macquarie and C$5.00 target price from Raymond James.
Renegade announced its credit line increase after the market closed on September 20. The company succeeded in increasing its drilling activity after spring break-up and has maintained this momentum into the second half of the year. The expansion of available funds should help finance this drilling through the end of the year.
Raymond James, uses its 2011E SUPER NAV estimate of C$6.01 and a four times multiple of 2012 estimated cash flow per share of C$1.05 to arrive at its C$5.00 target price for Renegade. The company's stock opened at C$2.70. The stock hit a 52-week high/low of C$5.00 and C$2.55, respectively.